Big Beautiful Bill Impact on Employers

Employers and Employees Will Feel the Impact of the Big Beautiful Bill

By: Jacob M. Monty

Introduction: The Big Beautiful Bill is Signed into Law
The Big Beautiful Bill was signed into law on July 4, 2025. Employers must now prepare for labor shortages, missing employees, and heightened I-9 scrutiny. The Bill pours an additional $170.7 billion into immigration and border enforcement-related activities. The agencies which receive this influx of revenue have a lot of discretion and no oversight.

Funding Allocation and Detention Centers
$45 billion will go directly to building new immigration detention centers. On September 5, 2025, the Board of Immigration Appeals (“BIA”) issued a decision declaring that immigration judges do not have the authority to conduct bond hearings. This means that undocumented persons detained by ICE will no longer have the right to go before a judge to determine their eligibility for bond. The ripple effect of mandatory detention will impact employers who will suffer labor shortages.

Workforce Challenges and Labor Shortages
Employers must prepare for the reality that their workforce, acting out of desperation, will agree to deportation rather than waiting one to two years in detention facilities for their day in court. On top of that, with increased inter-agency collaboration, such as the 287(g) program which allows local law enforcement to have the same authority as ICE agents, employers will notice that a lot of employees are no longer showing up to work. Employees pulled over during routine traffic stops now face detention and deportation.

Deportation Policies and Supreme Court Ruling
Adding to the threat of labor shortages is the reality that DHS can deport detained persons to any country that is willing to accept them. On June 23, 2025, the United States Supreme Court lifted the nationwide injunction preventing the government from deporting undocumented persons to countries that they are not from nor have any existing ties with.

Increased I-9 Audits and Compliance Risks
Along with the looming threat of labor shortages is the reality that I-9 audits will continue to multiply. With the infusion of cash, DHS is preparing to employ more ICE agents. A top priority for the Trump Administration is workplace compliance. To get employers to comply with federal immigration law, DHS issues large monetary fines for technical and substantive violations. ICE has the authority to fine individual stores. For example, from 2018 to 2021 ICE agents audited 20 Walmart stores resulting in Notices of Intent to Fine each individual store. In all, Walmart accumulated $24.2 million dollars in ICE fines for their failure to use the proper electronic I-9 software.

Preparing Your Business: Steps Employers Must Take
To prepare for business interruptions and costly penalties, employers must ensure that they are filling out Form I-9s correctly, conduct internal audits, and educate their employees about the changing immigration climate. For assistance, please reach out to Jacob M. Monty, board-certified attorney and partner that specializes in immigration and labor and employment issues.